Management Information Systems

Companies that develop management information systems (MIS) in-house are able to write the exact programs and reports that their employees need. Managers can request a specific report in a specific format, and the MIS department can create that report. However, such a capability has high internal costs since the company must maintain a well-trained MIS staff and other resources necessary to provide such a response. Some companies decide to use outside (third-party) applications that offer offtheshelf functionality, but which are not custom-designed to the company's exact needs. Companies which choose this option are likely to realize a lower cost of purchasing and implementing the product and, if no major modifications are involved, in maintaining the product over a period of time. However, they lose the ability to quickly and economically create custom reports for specific managers.

So long as a company has either an in-house system or a third-party system, managers learn to adapt the application to their needs. The process is not always easy, but managers learn the limitations and the advantages of the system. Significant problems can arise, however, when a company makes the decision to move from one type of system to another, with the major problems coming about when a company changes from an internal system to an external system.

The problems that arise come about in part because of the human tendency to resist change, and in part because managers must sacrific

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port deviates from the company standard for reporting, its long-term value can be questioned. The company must also consider the future needs for special reports and programs. If a manager has already identified a legitimate need for a custom report, there is a strong likelihood that other managers will be able to identify similar needs in the future. If the system does not make generating these reports an easy process, or if managers are unable to obtain the information they need to run their departments, then the value of the system as a whole must be reconsidered. Before deciding that the third-party option is not appropriate for the company, it is important that key decision makers, including the manager requesting the special report, take a hard look at what the report is designed to accomplish. There is the possibility that the manager is correct in assuming that he must have the same report he has always had in order to do his job. But it is also possible that the new system makes it possible for him to do his job without having the exact same report that he has had for years. Before deciding that the manager must have the report, the reason for the report must be examined. This examination begins with the question

Category: Business - M